Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Universal Display Corporation Announces Fourth Quarter and Full Year 2023 Financial Results By: Universal Display Corporation via Business Wire February 22, 2024 at 16:05 PM EST Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the fourth quarter and full year ended December 31, 2023. “In 2023, we achieved key milestones, strengthened our capabilities and infrastructure, and positioned the Company for growth in the years ahead,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation. “Looking to 2024 and beyond, we see multiple paths for growth in the coming years. The commencement of an OLED IT adoption cycle, the resumption of OLED TV growth, the rise of automotive OLED displays, and the popularity of foldable OLED mobile applications all create promising opportunities for substantial growth. In addition to the growing OLED market, we are advancing and broadening our R&D roadmap, which includes novel phosphorescent materials and architectures, as well as our OVJP manufacturing platform.” Financial Highlights for the Fourth Quarter of 2023 Total revenue in the fourth quarter of 2023 was $158.3 million as compared to $169.0 million in the fourth quarter of 2022. Revenue from material sales was $82.2 million in the fourth quarter of 2023 as compared to $88.3 million in the fourth quarter of 2022. The decrease in material sales was primarily the result of a decrease in the cumulative catch-up adjustments between periods, partially offset by higher sales volume of our emitter material. Revenue from royalty and license fees was $72.9 million in the fourth quarter of 2023 as compared to $75.6 million in the fourth quarter of 2022. The decrease in royalty and license fees was primarily the result of changes in customer mix. Cost of material sales was $33.4 million in the fourth quarter of 2023 as compared to $26.6 million in the fourth quarter of 2022. This was primarily due to an increase in the volume of material sales and increased contract manufacturing support costs. Total gross margin was 77% in the fourth quarter of 2023 as compared to 82% in the fourth quarter of 2022. Operating income was $64.7 million in the fourth quarter of 2023 as compared to $83.1 million in the fourth quarter of 2022. The effective income tax rate was 18.0% and 19.2% for the fourth quarters of 2023 and 2022, respectively. Net income was $62.0 million or $1.29 per diluted share in the fourth quarter of 2023 as compared to $65.1 million or $1.36 per diluted share in the fourth quarter of 2022. Revenue Comparison ($ in thousands) Three Months Ended December 31, 2023 2022 Material sales $ 82,240 $ 88,339 Royalty and license fees 72,865 75,585 Contract research services 3,215 5,108 Total revenue $ 158,320 $ 169,032 Cost of Materials Comparison ($ in thousands) Three Months Ended December 31, 2023 2022 Material sales $ 82,240 $ 88,339 Cost of material sales 33,379 26,603 Gross margin on material sales 48,861 61,736 Gross margin as a % of material sales 59 % 70 % Financial Highlights for the Full Year 2023 Total revenue in the full year 2023 was $576.4 million as compared to $616.6 million in the full year 2022. Revenue from material sales was $322.0 million in the full year 2023 as compared to $331.1 million in the full year 2022. The decline in material sales was primarily due to a decrease in the cumulative catch-up adjustments between periods, partially offset by higher blue emitter and host sales. Revenue from royalty and license fees was $238.4 million in the full year 2023 as compared to $267.1 million in the full year 2022. The decrease in royalty and license fees was primarily the result of higher estimated future demand for several of our customers over the remaining lives of their contracts, as well as a net $19.7 million reduction in revenue due to the difference in cumulative catch-up adjustments between periods, the majority of which was recorded to royalty and license fees. Cost of material sales was $123.1 million in the full year 2023 as compared to $115.6 million in the full year 2022. Cost of material sales increased primarily due to costs associated with our manufacturing facility in Shannon, Ireland which commenced manufacturing in mid-2022, increased inventory reserves and changes in product mix. Total gross margin was 77% in the full year 2023 as compared to 79% in the full year 2022. Increases in Shannon facility costs of $5.1 million and inventory reserves of $4.9 million in 2023 contributed to the 2% decrease in total gross margin between periods. Operating income was $217.2 million in the full year 2023 as compared to $267.1 million in the full year 2022. The effective income tax rate was 17.2% and 21.7% in the full years 2023 and 2022, respectively. Net income was $203.0 million or $4.24 per diluted share in the full year 2023 compared to $210.1 million or $4.40 per diluted share in the full year 2022. Revenue Comparison ($ in thousands) Year Ended December 31, 2023 2022 Material sales $ 322,029 $ 331,081 Royalty and license fees 238,389 267,115 Contract research services 16,011 18,423 Total revenue $ 576,429 $ 616,619 Cost of Materials Comparison ($ in thousands) Year Ended December 31, 2023 2022 Material sales $ 322,029 $ 331,081 Cost of material sales 123,076 115,602 Gross margin on material sales 198,953 215,479 Gross margin as a % of material sales 62 % 65 % 2024 Guidance The Company believes that its 2024 revenue will be in the range of $625 million to $675 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly. Dividend The Company also announced a first quarter cash dividend of $0.40 per share on the Company’s common stock. The dividend is payable on March 29, 2024 to all shareholders of record as of the close of business on March 15, 2024. Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, February 22, 2024 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call. About Universal Display Corporation Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 6,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/. Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks. All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document. Follow Universal Display Corporation Twitter Facebook YouTube (OLED-C) UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) December 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 91,985 $ 93,430 Short-term investments 422,137 484,345 Accounts receivable 139,850 92,664 Inventory 175,795 183,220 Other current assets 87,365 45,791 Total current assets 917,132 899,450 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $143,908 and $117,118 175,150 143,445 ACQUIRED TECHNOLOGY, net of accumulated amortization of $186,850 and $189,671 90,325 38,382 OTHER INTANGIBLE ASSETS, net of accumulated amortization of $10,414 and $8,989 6,874 8,247 GOODWILL 15,535 15,535 INVESTMENTS 299,548 259,861 DEFERRED INCOME TAXES 59,108 58,161 OTHER ASSETS 105,289 109,739 TOTAL ASSETS $ 1,668,961 $ 1,532,820 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 10,933 $ 9,519 Accrued expenses 52,080 51,002 Deferred revenue 47,713 45,599 Other current liabilities 8,096 29,577 Total current liabilities 118,822 135,697 DEFERRED REVENUE 12,006 18,279 RETIREMENT PLAN BENEFIT LIABILITY 52,249 59,790 OTHER LIABILITIES 38,658 43,685 Total liabilities 221,735 257,451 SHAREHOLDERS’ EQUITY: Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500) 2 2 Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 48,731,026 and 49,136,030 shares issued, and 47,365,378 and 47,770,382 shares outstanding at December 31, 2023 and December 31, 2022, respectively 487 491 Additional paid-in capital 699,554 681,335 Retained earnings 789,553 653,277 Accumulated other comprehensive loss (1,086 ) (18,452 ) Treasury stock, at cost (1,365,648 shares at December 31, 2023 and December 31, 2022) (41,284 ) (41,284 ) Total shareholders’ equity 1,447,226 1,275,369 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,668,961 $ 1,532,820 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 REVENUE: (Unaudited) Material sales $ 82,240 $ 88,339 $ 322,029 $ 331,081 Royalty and license fees 72,865 75,585 238,389 267,115 Contract research services 3,215 5,108 16,011 18,423 Total revenue 158,320 169,032 576,429 616,619 COST OF SALES 36,019 30,098 135,376 127,896 Gross margin 122,301 138,934 441,053 488,723 OPERATING EXPENSES: Research and development 33,641 31,906 130,481 117,062 Selling, general and administrative 16,830 18,513 67,387 77,886 Amortization of acquired technology and other intangible assets 4,551 2,897 15,993 17,459 Patent costs 2,300 2,254 9,356 8,329 Royalty and license expense 233 281 647 877 Total operating expenses 57,555 55,851 223,864 221,613 OPERATING INCOME 64,746 83,083 217,189 267,110 Interest income, net 7,865 3,505 28,166 7,811 Other income (loss), net 2,996 (5,942 ) (184 ) (6,691 ) Interest and other income (loss), net 10,861 (2,437 ) 27,982 1,120 INCOME BEFORE INCOME TAXES 75,607 80,646 245,171 268,230 INCOME TAX EXPENSE (13,629 ) (15,512 ) (42,160 ) (58,169 ) NET INCOME $ 61,978 $ 65,134 $ 203,011 $ 210,061 NET INCOME PER COMMON SHARE: BASIC $ 1.30 $ 1.37 $ 4.25 $ 4.41 DILUTED $ 1.29 $ 1.36 $ 4.24 $ 4.40 WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: BASIC 47,571,382 47,402,007 47,559,669 47,390,352 DILUTED 47,657,854 47,492,560 47,622,763 47,468,507 CASH DIVIDEND DECLARED PER COMMON SHARE $ 0.35 $ 0.30 $ 1.40 $ 1.20 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 203,011 210,061 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 27,409 24,815 Amortization of intangibles 15,993 17,459 Amortization of premium and discount on investments, net (11,603 ) (6,461 ) Impairment of minority investments — 6,962 Stock-based compensation to employees 22,335 28,380 Stock-based compensation to Board of Directors and Scientific Advisory Board 1,774 1,566 Deferred income tax benefit (3,766 ) (26,946 ) Retirement plan expense, net of benefit payments 3,129 5,276 Decrease (increase) in assets: Accounts receivable (47,186 ) 14,975 Inventory 7,425 (49,060 ) Other current assets (41,574 ) (24,843 ) Other assets 4,450 25,971 Increase (decrease) in liabilities: Accounts payable and accrued expenses 4,047 3,338 Other current liabilities (21,481 ) 20,917 Deferred revenue (4,159 ) (93,203 ) Other liabilities (5,027 ) (32,392 ) Net cash provided by operating activities 154,777 126,815 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (59,792 ) (42,497 ) Purchase of intangibles (66,563 ) (4,709 ) Purchases of investments (531,103 ) (701,993 ) Proceeds from sale and maturity of investments 574,165 468,456 Net cash used in investing activities (83,293 ) (280,743 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 2,012 1,570 Payment of withholding taxes related to stock-based compensation to employees (8,206 ) (9,209 ) Cash dividends paid (66,735 ) (56,996 ) Net cash used in financing activities (72,929 ) (64,635 ) DECREASE IN CASH AND CASH EQUIVALENTS (1,445 ) (218,563 ) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 93,430 311,993 CASH AND CASH EQUIVALENTS, END OF YEAR $ 91,985 $ 93,430 The following non-cash activities occurred: Unrealized loss on available-for-sale securities $ (8,938 ) $ (8,100 ) Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period 300 300 Net change in accounts payable and accrued expenses related to purchases of property and equipment 678 3,069 Cash paid for income taxes, net of refunds 96,176 72,347 View source version on businesswire.com: https://www.businesswire.com/news/home/20240222923341/en/Contacts Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Universal Display Corporation Announces Fourth Quarter and Full Year 2023 Financial Results By: Universal Display Corporation via Business Wire February 22, 2024 at 16:05 PM EST Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the fourth quarter and full year ended December 31, 2023. “In 2023, we achieved key milestones, strengthened our capabilities and infrastructure, and positioned the Company for growth in the years ahead,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation. “Looking to 2024 and beyond, we see multiple paths for growth in the coming years. The commencement of an OLED IT adoption cycle, the resumption of OLED TV growth, the rise of automotive OLED displays, and the popularity of foldable OLED mobile applications all create promising opportunities for substantial growth. In addition to the growing OLED market, we are advancing and broadening our R&D roadmap, which includes novel phosphorescent materials and architectures, as well as our OVJP manufacturing platform.” Financial Highlights for the Fourth Quarter of 2023 Total revenue in the fourth quarter of 2023 was $158.3 million as compared to $169.0 million in the fourth quarter of 2022. Revenue from material sales was $82.2 million in the fourth quarter of 2023 as compared to $88.3 million in the fourth quarter of 2022. The decrease in material sales was primarily the result of a decrease in the cumulative catch-up adjustments between periods, partially offset by higher sales volume of our emitter material. Revenue from royalty and license fees was $72.9 million in the fourth quarter of 2023 as compared to $75.6 million in the fourth quarter of 2022. The decrease in royalty and license fees was primarily the result of changes in customer mix. Cost of material sales was $33.4 million in the fourth quarter of 2023 as compared to $26.6 million in the fourth quarter of 2022. This was primarily due to an increase in the volume of material sales and increased contract manufacturing support costs. Total gross margin was 77% in the fourth quarter of 2023 as compared to 82% in the fourth quarter of 2022. Operating income was $64.7 million in the fourth quarter of 2023 as compared to $83.1 million in the fourth quarter of 2022. The effective income tax rate was 18.0% and 19.2% for the fourth quarters of 2023 and 2022, respectively. Net income was $62.0 million or $1.29 per diluted share in the fourth quarter of 2023 as compared to $65.1 million or $1.36 per diluted share in the fourth quarter of 2022. Revenue Comparison ($ in thousands) Three Months Ended December 31, 2023 2022 Material sales $ 82,240 $ 88,339 Royalty and license fees 72,865 75,585 Contract research services 3,215 5,108 Total revenue $ 158,320 $ 169,032 Cost of Materials Comparison ($ in thousands) Three Months Ended December 31, 2023 2022 Material sales $ 82,240 $ 88,339 Cost of material sales 33,379 26,603 Gross margin on material sales 48,861 61,736 Gross margin as a % of material sales 59 % 70 % Financial Highlights for the Full Year 2023 Total revenue in the full year 2023 was $576.4 million as compared to $616.6 million in the full year 2022. Revenue from material sales was $322.0 million in the full year 2023 as compared to $331.1 million in the full year 2022. The decline in material sales was primarily due to a decrease in the cumulative catch-up adjustments between periods, partially offset by higher blue emitter and host sales. Revenue from royalty and license fees was $238.4 million in the full year 2023 as compared to $267.1 million in the full year 2022. The decrease in royalty and license fees was primarily the result of higher estimated future demand for several of our customers over the remaining lives of their contracts, as well as a net $19.7 million reduction in revenue due to the difference in cumulative catch-up adjustments between periods, the majority of which was recorded to royalty and license fees. Cost of material sales was $123.1 million in the full year 2023 as compared to $115.6 million in the full year 2022. Cost of material sales increased primarily due to costs associated with our manufacturing facility in Shannon, Ireland which commenced manufacturing in mid-2022, increased inventory reserves and changes in product mix. Total gross margin was 77% in the full year 2023 as compared to 79% in the full year 2022. Increases in Shannon facility costs of $5.1 million and inventory reserves of $4.9 million in 2023 contributed to the 2% decrease in total gross margin between periods. Operating income was $217.2 million in the full year 2023 as compared to $267.1 million in the full year 2022. The effective income tax rate was 17.2% and 21.7% in the full years 2023 and 2022, respectively. Net income was $203.0 million or $4.24 per diluted share in the full year 2023 compared to $210.1 million or $4.40 per diluted share in the full year 2022. Revenue Comparison ($ in thousands) Year Ended December 31, 2023 2022 Material sales $ 322,029 $ 331,081 Royalty and license fees 238,389 267,115 Contract research services 16,011 18,423 Total revenue $ 576,429 $ 616,619 Cost of Materials Comparison ($ in thousands) Year Ended December 31, 2023 2022 Material sales $ 322,029 $ 331,081 Cost of material sales 123,076 115,602 Gross margin on material sales 198,953 215,479 Gross margin as a % of material sales 62 % 65 % 2024 Guidance The Company believes that its 2024 revenue will be in the range of $625 million to $675 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly. Dividend The Company also announced a first quarter cash dividend of $0.40 per share on the Company’s common stock. The dividend is payable on March 29, 2024 to all shareholders of record as of the close of business on March 15, 2024. Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, February 22, 2024 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call. About Universal Display Corporation Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 6,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/. Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks. All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document. Follow Universal Display Corporation Twitter Facebook YouTube (OLED-C) UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) December 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 91,985 $ 93,430 Short-term investments 422,137 484,345 Accounts receivable 139,850 92,664 Inventory 175,795 183,220 Other current assets 87,365 45,791 Total current assets 917,132 899,450 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $143,908 and $117,118 175,150 143,445 ACQUIRED TECHNOLOGY, net of accumulated amortization of $186,850 and $189,671 90,325 38,382 OTHER INTANGIBLE ASSETS, net of accumulated amortization of $10,414 and $8,989 6,874 8,247 GOODWILL 15,535 15,535 INVESTMENTS 299,548 259,861 DEFERRED INCOME TAXES 59,108 58,161 OTHER ASSETS 105,289 109,739 TOTAL ASSETS $ 1,668,961 $ 1,532,820 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 10,933 $ 9,519 Accrued expenses 52,080 51,002 Deferred revenue 47,713 45,599 Other current liabilities 8,096 29,577 Total current liabilities 118,822 135,697 DEFERRED REVENUE 12,006 18,279 RETIREMENT PLAN BENEFIT LIABILITY 52,249 59,790 OTHER LIABILITIES 38,658 43,685 Total liabilities 221,735 257,451 SHAREHOLDERS’ EQUITY: Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500) 2 2 Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 48,731,026 and 49,136,030 shares issued, and 47,365,378 and 47,770,382 shares outstanding at December 31, 2023 and December 31, 2022, respectively 487 491 Additional paid-in capital 699,554 681,335 Retained earnings 789,553 653,277 Accumulated other comprehensive loss (1,086 ) (18,452 ) Treasury stock, at cost (1,365,648 shares at December 31, 2023 and December 31, 2022) (41,284 ) (41,284 ) Total shareholders’ equity 1,447,226 1,275,369 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,668,961 $ 1,532,820 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 REVENUE: (Unaudited) Material sales $ 82,240 $ 88,339 $ 322,029 $ 331,081 Royalty and license fees 72,865 75,585 238,389 267,115 Contract research services 3,215 5,108 16,011 18,423 Total revenue 158,320 169,032 576,429 616,619 COST OF SALES 36,019 30,098 135,376 127,896 Gross margin 122,301 138,934 441,053 488,723 OPERATING EXPENSES: Research and development 33,641 31,906 130,481 117,062 Selling, general and administrative 16,830 18,513 67,387 77,886 Amortization of acquired technology and other intangible assets 4,551 2,897 15,993 17,459 Patent costs 2,300 2,254 9,356 8,329 Royalty and license expense 233 281 647 877 Total operating expenses 57,555 55,851 223,864 221,613 OPERATING INCOME 64,746 83,083 217,189 267,110 Interest income, net 7,865 3,505 28,166 7,811 Other income (loss), net 2,996 (5,942 ) (184 ) (6,691 ) Interest and other income (loss), net 10,861 (2,437 ) 27,982 1,120 INCOME BEFORE INCOME TAXES 75,607 80,646 245,171 268,230 INCOME TAX EXPENSE (13,629 ) (15,512 ) (42,160 ) (58,169 ) NET INCOME $ 61,978 $ 65,134 $ 203,011 $ 210,061 NET INCOME PER COMMON SHARE: BASIC $ 1.30 $ 1.37 $ 4.25 $ 4.41 DILUTED $ 1.29 $ 1.36 $ 4.24 $ 4.40 WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: BASIC 47,571,382 47,402,007 47,559,669 47,390,352 DILUTED 47,657,854 47,492,560 47,622,763 47,468,507 CASH DIVIDEND DECLARED PER COMMON SHARE $ 0.35 $ 0.30 $ 1.40 $ 1.20 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 203,011 210,061 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 27,409 24,815 Amortization of intangibles 15,993 17,459 Amortization of premium and discount on investments, net (11,603 ) (6,461 ) Impairment of minority investments — 6,962 Stock-based compensation to employees 22,335 28,380 Stock-based compensation to Board of Directors and Scientific Advisory Board 1,774 1,566 Deferred income tax benefit (3,766 ) (26,946 ) Retirement plan expense, net of benefit payments 3,129 5,276 Decrease (increase) in assets: Accounts receivable (47,186 ) 14,975 Inventory 7,425 (49,060 ) Other current assets (41,574 ) (24,843 ) Other assets 4,450 25,971 Increase (decrease) in liabilities: Accounts payable and accrued expenses 4,047 3,338 Other current liabilities (21,481 ) 20,917 Deferred revenue (4,159 ) (93,203 ) Other liabilities (5,027 ) (32,392 ) Net cash provided by operating activities 154,777 126,815 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (59,792 ) (42,497 ) Purchase of intangibles (66,563 ) (4,709 ) Purchases of investments (531,103 ) (701,993 ) Proceeds from sale and maturity of investments 574,165 468,456 Net cash used in investing activities (83,293 ) (280,743 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 2,012 1,570 Payment of withholding taxes related to stock-based compensation to employees (8,206 ) (9,209 ) Cash dividends paid (66,735 ) (56,996 ) Net cash used in financing activities (72,929 ) (64,635 ) DECREASE IN CASH AND CASH EQUIVALENTS (1,445 ) (218,563 ) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 93,430 311,993 CASH AND CASH EQUIVALENTS, END OF YEAR $ 91,985 $ 93,430 The following non-cash activities occurred: Unrealized loss on available-for-sale securities $ (8,938 ) $ (8,100 ) Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period 300 300 Net change in accounts payable and accrued expenses related to purchases of property and equipment 678 3,069 Cash paid for income taxes, net of refunds 96,176 72,347 View source version on businesswire.com: https://www.businesswire.com/news/home/20240222923341/en/Contacts Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123
Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the fourth quarter and full year ended December 31, 2023. “In 2023, we achieved key milestones, strengthened our capabilities and infrastructure, and positioned the Company for growth in the years ahead,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation. “Looking to 2024 and beyond, we see multiple paths for growth in the coming years. The commencement of an OLED IT adoption cycle, the resumption of OLED TV growth, the rise of automotive OLED displays, and the popularity of foldable OLED mobile applications all create promising opportunities for substantial growth. In addition to the growing OLED market, we are advancing and broadening our R&D roadmap, which includes novel phosphorescent materials and architectures, as well as our OVJP manufacturing platform.” Financial Highlights for the Fourth Quarter of 2023 Total revenue in the fourth quarter of 2023 was $158.3 million as compared to $169.0 million in the fourth quarter of 2022. Revenue from material sales was $82.2 million in the fourth quarter of 2023 as compared to $88.3 million in the fourth quarter of 2022. The decrease in material sales was primarily the result of a decrease in the cumulative catch-up adjustments between periods, partially offset by higher sales volume of our emitter material. Revenue from royalty and license fees was $72.9 million in the fourth quarter of 2023 as compared to $75.6 million in the fourth quarter of 2022. The decrease in royalty and license fees was primarily the result of changes in customer mix. Cost of material sales was $33.4 million in the fourth quarter of 2023 as compared to $26.6 million in the fourth quarter of 2022. This was primarily due to an increase in the volume of material sales and increased contract manufacturing support costs. Total gross margin was 77% in the fourth quarter of 2023 as compared to 82% in the fourth quarter of 2022. Operating income was $64.7 million in the fourth quarter of 2023 as compared to $83.1 million in the fourth quarter of 2022. The effective income tax rate was 18.0% and 19.2% for the fourth quarters of 2023 and 2022, respectively. Net income was $62.0 million or $1.29 per diluted share in the fourth quarter of 2023 as compared to $65.1 million or $1.36 per diluted share in the fourth quarter of 2022. Revenue Comparison ($ in thousands) Three Months Ended December 31, 2023 2022 Material sales $ 82,240 $ 88,339 Royalty and license fees 72,865 75,585 Contract research services 3,215 5,108 Total revenue $ 158,320 $ 169,032 Cost of Materials Comparison ($ in thousands) Three Months Ended December 31, 2023 2022 Material sales $ 82,240 $ 88,339 Cost of material sales 33,379 26,603 Gross margin on material sales 48,861 61,736 Gross margin as a % of material sales 59 % 70 % Financial Highlights for the Full Year 2023 Total revenue in the full year 2023 was $576.4 million as compared to $616.6 million in the full year 2022. Revenue from material sales was $322.0 million in the full year 2023 as compared to $331.1 million in the full year 2022. The decline in material sales was primarily due to a decrease in the cumulative catch-up adjustments between periods, partially offset by higher blue emitter and host sales. Revenue from royalty and license fees was $238.4 million in the full year 2023 as compared to $267.1 million in the full year 2022. The decrease in royalty and license fees was primarily the result of higher estimated future demand for several of our customers over the remaining lives of their contracts, as well as a net $19.7 million reduction in revenue due to the difference in cumulative catch-up adjustments between periods, the majority of which was recorded to royalty and license fees. Cost of material sales was $123.1 million in the full year 2023 as compared to $115.6 million in the full year 2022. Cost of material sales increased primarily due to costs associated with our manufacturing facility in Shannon, Ireland which commenced manufacturing in mid-2022, increased inventory reserves and changes in product mix. Total gross margin was 77% in the full year 2023 as compared to 79% in the full year 2022. Increases in Shannon facility costs of $5.1 million and inventory reserves of $4.9 million in 2023 contributed to the 2% decrease in total gross margin between periods. Operating income was $217.2 million in the full year 2023 as compared to $267.1 million in the full year 2022. The effective income tax rate was 17.2% and 21.7% in the full years 2023 and 2022, respectively. Net income was $203.0 million or $4.24 per diluted share in the full year 2023 compared to $210.1 million or $4.40 per diluted share in the full year 2022. Revenue Comparison ($ in thousands) Year Ended December 31, 2023 2022 Material sales $ 322,029 $ 331,081 Royalty and license fees 238,389 267,115 Contract research services 16,011 18,423 Total revenue $ 576,429 $ 616,619 Cost of Materials Comparison ($ in thousands) Year Ended December 31, 2023 2022 Material sales $ 322,029 $ 331,081 Cost of material sales 123,076 115,602 Gross margin on material sales 198,953 215,479 Gross margin as a % of material sales 62 % 65 % 2024 Guidance The Company believes that its 2024 revenue will be in the range of $625 million to $675 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly. Dividend The Company also announced a first quarter cash dividend of $0.40 per share on the Company’s common stock. The dividend is payable on March 29, 2024 to all shareholders of record as of the close of business on March 15, 2024. Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, February 22, 2024 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call. About Universal Display Corporation Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 6,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/. Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks. All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document. Follow Universal Display Corporation Twitter Facebook YouTube (OLED-C) UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) December 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 91,985 $ 93,430 Short-term investments 422,137 484,345 Accounts receivable 139,850 92,664 Inventory 175,795 183,220 Other current assets 87,365 45,791 Total current assets 917,132 899,450 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $143,908 and $117,118 175,150 143,445 ACQUIRED TECHNOLOGY, net of accumulated amortization of $186,850 and $189,671 90,325 38,382 OTHER INTANGIBLE ASSETS, net of accumulated amortization of $10,414 and $8,989 6,874 8,247 GOODWILL 15,535 15,535 INVESTMENTS 299,548 259,861 DEFERRED INCOME TAXES 59,108 58,161 OTHER ASSETS 105,289 109,739 TOTAL ASSETS $ 1,668,961 $ 1,532,820 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 10,933 $ 9,519 Accrued expenses 52,080 51,002 Deferred revenue 47,713 45,599 Other current liabilities 8,096 29,577 Total current liabilities 118,822 135,697 DEFERRED REVENUE 12,006 18,279 RETIREMENT PLAN BENEFIT LIABILITY 52,249 59,790 OTHER LIABILITIES 38,658 43,685 Total liabilities 221,735 257,451 SHAREHOLDERS’ EQUITY: Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500) 2 2 Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 48,731,026 and 49,136,030 shares issued, and 47,365,378 and 47,770,382 shares outstanding at December 31, 2023 and December 31, 2022, respectively 487 491 Additional paid-in capital 699,554 681,335 Retained earnings 789,553 653,277 Accumulated other comprehensive loss (1,086 ) (18,452 ) Treasury stock, at cost (1,365,648 shares at December 31, 2023 and December 31, 2022) (41,284 ) (41,284 ) Total shareholders’ equity 1,447,226 1,275,369 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,668,961 $ 1,532,820 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 REVENUE: (Unaudited) Material sales $ 82,240 $ 88,339 $ 322,029 $ 331,081 Royalty and license fees 72,865 75,585 238,389 267,115 Contract research services 3,215 5,108 16,011 18,423 Total revenue 158,320 169,032 576,429 616,619 COST OF SALES 36,019 30,098 135,376 127,896 Gross margin 122,301 138,934 441,053 488,723 OPERATING EXPENSES: Research and development 33,641 31,906 130,481 117,062 Selling, general and administrative 16,830 18,513 67,387 77,886 Amortization of acquired technology and other intangible assets 4,551 2,897 15,993 17,459 Patent costs 2,300 2,254 9,356 8,329 Royalty and license expense 233 281 647 877 Total operating expenses 57,555 55,851 223,864 221,613 OPERATING INCOME 64,746 83,083 217,189 267,110 Interest income, net 7,865 3,505 28,166 7,811 Other income (loss), net 2,996 (5,942 ) (184 ) (6,691 ) Interest and other income (loss), net 10,861 (2,437 ) 27,982 1,120 INCOME BEFORE INCOME TAXES 75,607 80,646 245,171 268,230 INCOME TAX EXPENSE (13,629 ) (15,512 ) (42,160 ) (58,169 ) NET INCOME $ 61,978 $ 65,134 $ 203,011 $ 210,061 NET INCOME PER COMMON SHARE: BASIC $ 1.30 $ 1.37 $ 4.25 $ 4.41 DILUTED $ 1.29 $ 1.36 $ 4.24 $ 4.40 WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: BASIC 47,571,382 47,402,007 47,559,669 47,390,352 DILUTED 47,657,854 47,492,560 47,622,763 47,468,507 CASH DIVIDEND DECLARED PER COMMON SHARE $ 0.35 $ 0.30 $ 1.40 $ 1.20 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 203,011 210,061 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 27,409 24,815 Amortization of intangibles 15,993 17,459 Amortization of premium and discount on investments, net (11,603 ) (6,461 ) Impairment of minority investments — 6,962 Stock-based compensation to employees 22,335 28,380 Stock-based compensation to Board of Directors and Scientific Advisory Board 1,774 1,566 Deferred income tax benefit (3,766 ) (26,946 ) Retirement plan expense, net of benefit payments 3,129 5,276 Decrease (increase) in assets: Accounts receivable (47,186 ) 14,975 Inventory 7,425 (49,060 ) Other current assets (41,574 ) (24,843 ) Other assets 4,450 25,971 Increase (decrease) in liabilities: Accounts payable and accrued expenses 4,047 3,338 Other current liabilities (21,481 ) 20,917 Deferred revenue (4,159 ) (93,203 ) Other liabilities (5,027 ) (32,392 ) Net cash provided by operating activities 154,777 126,815 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (59,792 ) (42,497 ) Purchase of intangibles (66,563 ) (4,709 ) Purchases of investments (531,103 ) (701,993 ) Proceeds from sale and maturity of investments 574,165 468,456 Net cash used in investing activities (83,293 ) (280,743 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 2,012 1,570 Payment of withholding taxes related to stock-based compensation to employees (8,206 ) (9,209 ) Cash dividends paid (66,735 ) (56,996 ) Net cash used in financing activities (72,929 ) (64,635 ) DECREASE IN CASH AND CASH EQUIVALENTS (1,445 ) (218,563 ) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 93,430 311,993 CASH AND CASH EQUIVALENTS, END OF YEAR $ 91,985 $ 93,430 The following non-cash activities occurred: Unrealized loss on available-for-sale securities $ (8,938 ) $ (8,100 ) Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period 300 300 Net change in accounts payable and accrued expenses related to purchases of property and equipment 678 3,069 Cash paid for income taxes, net of refunds 96,176 72,347 View source version on businesswire.com: https://www.businesswire.com/news/home/20240222923341/en/
